Fixed Ops Magazine - 2021 Vol18 04 - 58

average were replaced on appraisals with 30 or more
labor hours per claim between CY 2011 and CY 2020.
Individual cost-per-replacement part has grown on average
at least 1 percent annually over the last several
years, but the average cost per part for current model
year vehicles has been rising fastest, suggesting part
prices in aggregate may rise further in the future (see
Figure 10). OEM share of replacement part costs had
increased in CY 2019 on the tail of five-plus years of
17M new vehicle sales but declined slightly in CY 2020
as the average vehicle age increased (see Figure 11).
Parts that showed some of the largest increases are
also the parts where manufacturers have accelerated
use of lightweight materials such as magnesium and
aluminum, which tend to cost more than mild steel
(see Figure 12).
Combined, OEM and non-OEM replacement now account
for over 40 percent of the overall repair cost,
up from 38 percent in CY 2008 (see Figure 13). With
each vehicle repair requiring more part replacements
at a higher cost, with more labor hours at a higher rate,
it's easy to understand why repair costs are increasing.
Combine that with a continued vehicle fleet shift
to newer, more expensive light trucks, and the industry
will likely continue to see repair costs rise over the
next several years. This trend is likely to continue until
such time as ADAS-equipped vehicles account for
58
a much larger share of the overall registered vehicle
population in the U.S., and some of the anticipated reductions
in both accident counts and repair cost will
have a broader impact.
Susanna Gotsch, Director,
Industry Analyst at
CCC. Susanna
brings
more than twenty years
of
experience
within
the automotive claims
industry to her role as
Director,
Industry Analyst
for CCC. She has
authored Crash Course,
CCC's annual publication, and a key resource for the industry
in understanding how leading trends and technologies
are impacting and shaping the P&C insurance
economy.
Ms. Gotsch has presented her research at numerous industry
meetings and symposiums. In 2011, Ms. Gotsch
was selected as one of five Most Influential Women in
the Collision Repair Industry through the annual industry
honorarium established by AkzoNobel Automotive
& Aerospace Coatings America (A&AC). Ms. Gotsch received
a B.A. from St. Olaf College in 1989. She also has
an M.A. from Indiana University.
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